Mrs. Knapp US History Unit 10: The Great Depression and the New Deal (Boom, Bust, and Recovery) SOL Review STANDARD VUS.10a The student will demonstrate knowledge of key domestic events of the 1920s and 1930s by a) analyzing how radio, movies, newspapers, and magazines created popular culture and challenged traditional values. Essential Understanding The popular culture reflected the prosperity of the era. Essential Knowledge Mass Media and Communication Radio – broadcast jazz and fireside chats Movies – provided an escape from Depression Era realities Newspapers and Magazines – shaped cultural norms and sparked fads Challenges to Traditional Values Traditional religions – Darwin’s theory and Scopes trial Traditional role of women – flappers and 19th Amendment Open immigration – rise of new KKK Prohibition – smuggling alcohol and speakeasies STANDARD VUS.10b The student will demonstrate knowledge of key domestic events of the 1920s and 1930s by b) assessing the causes and consequences of the stock market crash of 1929. Essential Understanding The United States emerged from World War I as a global power. The stock market boom and optimism of the 1920s were generated by investments made with borrowed money. When businesses failed, the stocks lost their value, prices fell, production slowed, banks collapsed, and unemployment became widespread. Essential Knowledge Causes of the stock market crash of 1929 Business was booming but investments were made with borrowed money (overspeculation) Excessive expansion of credit Business failures led to bankruptcies Bank deposits were also invested in the market When the market collapsed, the banks had no money Consequences Clients panicked attempting to withdraw their money from banks but there was nothing to give them No new investments STANDARD VUS.10c The student will demonstrate knowledge of the key domestic events of the 1920s and 1930s by c) explaining the causes of the Great Depression and its impact on the American people. Essential Understanding The Great Depression caused widespread hardships. Essential Knowledge Causes of the Great Depression The stock market crashed in 1929 and stock prices collapsed. Federal Reserve’s failure to prevent widespread collapse of the nation’s banking system in the late 1920s and early 1930s, leading to severe contraction in the nation’s supply of money in circulation High protective tariffs that produced retaliatory tariffs in other countries, strangling world trade (Tariff Act of 1930, popularly called the Hawley-Smoot Act) Impact Unemployment and homelessness Collapse of financial system (bank closings) Demand for goods declined Political unrest (growing militancy of labor unions) Farm foreclosures and migration STANDARD VUS.10d The student will demonstrate knowledge of key domestic events of the 1920s and 1930s by d) describing how Franklin D. Roosevelt’s New Deal relief, recovery, and reform measures addressed the Great Depression and expanded the government’s role in the economy. Essential Understanding The New Deal altered permanently the role of American government in the economy. It also fostered changes in people’s attitudes toward government’s responsibilities. Organized labor acquired new rights, as the New Deal set in place legislation that reshaped modern American capitalism. Essential Knowledge New Deal (Franklin Roosevelt) This program changed the role of the government to a more active participant in solving problems. Roosevelt rallied a frightened nation in which one in four workers was unemployed. (“We have nothing to fear, but fear itself.”) Relief measures provided direct payment to people for immediate help (Works Progress Administration—WPA). Recovery programs were designed to bring nation out of the Depression over time (Agricultural Adjustment Administration—AAA). Reform measures corrected unsound banking and investment practices (Federal Deposit Insurance Corporation—FDIC). Social Security Act offered safeguards for workers. The legacy of the New Deal influenced the public’s belief in the responsibility of government to deliver public services, to intervene in the economy, and to act in ways that promote the general welfare. 1920s Mass Media and Communication Radio Movies Newspapers and Magazines Challenges to Traditional Values Traditional Religions Traditional Role of Women Open Immigration Prohibition Broadcast __________ and ______________________ Provided an _________ from ______________Era realities Shaped _____________ norms and sparked _________ ___________ theory and ___________ trial ____________ and ______ Amendment Rise of new _______ Smuggling __________ and ______________ GREAT DEPRESSION Causes: Overspeculation of __________ (1929 crash) Federal Reserve’s failure to prevent collapse of _____________________ High protective _________ resulting in tariffs from other countries Tariff Act of 1930 - _____________________ Act Franklin Roosevelt’s New Deal Acronym Acronyms mean? WPA Works Progress Administration AAA Agricultural Adjustment Administration FDIC Federal Deposit Insurance Corporation Social Security Impact: Unemployed and _________________ Collapse of _____________________ Political unrest (growing militancy of ___________________) Farm foreclosures and _____________ How did this program help Employed people to do ______________ with direct payment for immediate help Recovery programs to bring nation out of depression over time Increased government regulation of _______________ and made payments to farmers Corrected unsound banking and investment practices Insured _______ in individual bank accounts Unemployment insurance for those _____________ Pensions for __________ over the age of 65 Payments for blind, disabled and elderly – and to wives and children of male workers who die Roosevelt rallied a frightened nation in which one in four workers was unemployed. What famous quote from this era was spoken by Roosevelt? ___________________________________________________